Category: Strategy


60% Can Barely Make Ends Meet: Unveiling America’s Paycheck-to-Paycheck Crisis

The “PYMNTS-New-Reality-Check-February-2024” report provides an in-depth look into U.S. consumers’ financial struggles and behaviors, particularly those living paycheck to paycheck. Below are the statistics highlighted in the report. [Link to Report below.]


While this “PYMNTS-New-Reality-Check-February-2024” report indicates that a segment of U.S. consumers remains somewhat optimistic about their financial futures despite economic pressures, I find this outlook overly optimistic, given the broader economic data.

For instance, from 2020 to 2024, food and beverage prices experienced an average annual inflation rate of 5.09%, significantly higher than the overall inflation rate, leading to a cumulative price increase of 21.95% over these years【source】. Such substantial increases in essential items like food highlight a more challenging economic environment than the report might suggest.

Furthermore, the housing market has seen dramatic price increases, primarily driven by low mortgage rates and a pandemic-induced demand surge, leading to a greater than 50% reduction in housing inventory since early 2020【source】. This housing price surge significantly contributes to the cost-of-living increases not fully captured by the general CPI inflation figures reported around 3-4% annually【source】.

These specific sector inflations in essential areas like food and housing suggest that the economic pressures on consumers are more severe than what may be reflected in broader inflation metrics or consumer optimism reported in the PYMNTS study. Therefore, it’s critical to consider these focused economic factors when evaluating consumer financial health and outlook, as they paint a more accurate picture of the challenges many Americans face trying to keep up with rising costs.

NOW, here are the statistics highlighted in the report:

1. Living Paycheck to Paycheck: As of December 2023, 60% of U.S. consumers lived paycheck to paycheck, a decrease from 64% in the previous year.

2. Struggling with Monthly Bills: In December 2023, 19% of consumers reported difficulties paying monthly bills, down from 24% in December 2022. This indicates a slight improvement in the financial situation of consumers, which could lead to increased consumer spending.

3. Economic Concerns: Despite a decrease in overall concern from the previous year, 83% of consumers remained worried about near-term economic conditions as of the end of 2023. This is a significant decrease from the 90% reported in 2022, indicating a slight improvement in consumer confidence.

4. Optimism about Personal Financial Situations: It’s noteworthy that a significant 39% of consumers felt optimistic about their financial futures, a figure that remained unchanged from December 2022, indicating a steady belief in better times ahead.

5. Expectations for Inflation and Wages:

   – More than half of the consumers expected inflation to increase in 2024.

   – Less than 40% of consumers anticipated real increases in their earnings for the year.

6. Savings Goals: Despite economic uncertainties, 58% of consumers hoped to manage their spending well enough to end 2024 with more savings than they started with.

7. Credit Standing Pessimism: Many consumers were pessimistic about their credit standing and expected interest rates to rise in 2024.

These statistics depict a consumer base that, despite being cautious about the economic future and facing real challenges with savings and expenses, demonstrates a remarkable resilience in managing their financial health amidst fluctuating economic conditions.

As financial analysts, policymakers, and business leaders in the subprime lending market, it is imperative that we proactively respond to the emerging trends indicating a substantial increase in new loan originations.

This surge necessitates our urgent preparation and innovation in product offerings, particularly through the development of unique, collateralized loan products like car title loans.

Furthermore, we must brace for heightened regulatory scrutiny, especially concerning APRs, to ensure compliance and maintain trust.

By understanding and adapting to these dynamics, we can enhance our service delivery and meet the evolving needs of our consumer base more effectively.

[Link to the original Report: Payments New Reality]


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Fintech Lenders “Don’t Need No Stinking Badges” Quo: Lender to the Masses

How to Loan Money to Strangers

Man, there are some serious new approaches to “The Business of Lending to the Masses” entering the marketplace.

I’ve previously broken down, and… and more on our Blog. Today, I point you to Quo.

Now if you’re “old school,” like I was back in the day, this will likely piss you off!

After all, to build your consumer loan business it’s likely you approached the launch of your payday loan business, your installment loan business, your car title loan business, your pawnshop business… whatever you choose to call it, and plodded through your state licensing process.

You then selected a loan management software provider, integrated with ACH and debit card providers, struggled to get a bank account opened… and on and on.

Just to get a State license can kill 30 – 90 days+.  Oh, you’re a Lender so let’s not forget to get your Bond! And your lawyer, your consumer loan contracts…

Of course, by collaborating with a federally recognized Native American Indian tribe you could get set up within 30 days and loan in 37+ States.

Why do I suspect the following Forbes piece will upset you?

Because these new Fintech Lenders “don’t need no stinking badges” – I mean licenses. [Shout out to Clint Eastwood in “The Good, the Bad and the Ugly.” Great movie and soundtrack!]

According to the Forbes article:

Quo relies on using AI to sort through a user’s financial transactions to understand their spending habits.

Once a user’s economic history is compiled and interpreted, the startup sends a debit card to the user for financial use.

The debit card allows access to two types of loans via a monthly subscription: $5.99/month for $400 at 5% APR or $9.99/month for $700 at 2% APR.

Those interest rates are dramatically lower compared to credit cards and payday loans.

The startup providing these loans via a small-monthly fee with borrower-friendly APRs reflects their mission of not wanting their users to be in debt.

Unlike the conventional credit business models, profit is not made by keeping users spending and perpetually in debt to pay interest, but by getting them out of debt to build savings.

These loans come with user-specified constraints, such as the money can only be used at merchants that are relevant to the purpose of the loan.

If someone is taking out the loan to make a car payment, then the user can only spend that money to pay off the vehicle for that month.

More importantly, if a user falls behind on their loan repayment, Quo is able to restructure the loan in real-time to adjust to a person’s immediate financial constraints.”

Read MORE here: Forbes

Shout out to the author of this piece on Forbes! Frederick Daso I write about college students and recent graduates founding startups.”

PS: Want to know how to jerry-rig and integrate all the “plug-n-play” platforms and services available today for launching a consumer lending company “on the cheap?”

Grab a copy of our “bible:” The Business of Lending to the Masses. Here’s the “Table of Contents.”

Or better, schedule a consultation with Me & my Team: Scheduling.

Visit Jer’s LinkedIn Profile: LinkedIn

How to start a payday loan business, an installment loan business, a car title loan business...


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Why the Goeasy Ltd Model is the Future of Non-Prime Lending!

Goeasy Ltd. Reports Results for the Fourth Quarter and Full Year
& Announces Increase to Automotive Securitization Facility

Quarterly Loan Originations of $705 million, up 12% from $632 million

Loan Portfolio of $3.65 billion, up 30% from $2.79 billion

Quarterly Net Charge Off Rate of 8.8%, down 20 bps from 9.0%

Quarterly Diluted EPS of $4.34, up 154%;

Adjusted Quarterly Diluted EPS1 of $4.01, up 32% from $3.05

Annual Diluted EPS of $14.48, up 72%;

Adjusted Annual Diluted EPS1 of $14.21, up 23% from $11.55

Annual Dividend per Share Increased to $4.68, up 22% from $3.84

Let’s delve into Goeasy LTD’s March 2024 and Q4 2023 financial performance, key findings, background, and some insights based on the data available in these Goeasy documents.

Background and Overview:

Goeasy Ltd is a Canadian company specializing in offering high-interest loans to consumers who typically do not qualify for traditional bank loans.

Their services include both secured and unsecured consumer loans, with a strategic focus on underbanked or credit-challenged individuals.

Goeasy also leverages a network of retail locations alongside a robust online platform to service their loans.

Financial Performance Highlights

Q4 2023
– Revenue Growth: Goeasy reported a significant increase in revenue compared to Q4 2022, largely due to increased loan originations which reflect a continuing demand for non-prime consumer credit.
– Net Income: There was a notable improvement in net income, driven by better loan performance and cost management.
– Loan Book Quality: The loan book showed resilience with reduced delinquency rates, thanks to enhanced credit assessment techniques.

March 2024

– Annual Performance: The annual report reflects a sustained increase in revenue year-over-year, with a robust growth in both secured and unsecured loan portfolios.
– Operational Efficiency: Operating expenses as a percentage of revenue have decreased, indicating improved operational efficiency.
– Expansion: Goeasy has expanded its market reach by opening new branches and enhancing its digital platform to accommodate a broader demographic.

Key Takeaways

– Steady Growth: Goeasy Ltd has shown consistent financial growth, underscoring the effectiveness of their business model in the subprime lending market.
– Operational Resilience: Operational improvements have contributed to a lower cost structure, making the company more resilient against economic fluctuations.
– Credit Risk Management: Enhanced credit scoring and risk management practices have resulted in a healthier loan book with fewer delinquencies.

Strategic Insights

– Market Position: Goeasy’s focus on technology and customer service continues to solidify its position in the market as a preferred lender for non-prime consumers.
– Investment in Technology: Continuous investment in digital platforms is critical, especially to cater to the younger demographic and improve the customer loan management process.
– Regulatory Environment: Staying ahead of regulatory changes and maintaining a proactive approach towards compliance is vital for sustaining growth and mitigating risks.

Goeasy is likely to continue benefiting from the expanding market demand for alternative financing solutions.

However, they must remain vigilant about potential economic downturns that could affect their customer base’s ability to repay loans.

By harnessing advanced analytics for better risk assessment and exploring new market segments, Goeasy can potentially enhance its growth trajectory and profitability in the coming years.

The strategy should also include a strong focus on customer education and financial literacy to reduce default risks and foster customer loyalty.

Overall, Goeasy Ltd’s financial health appears robust, with effective strategies in place to navigate the challenges and opportunities of the subprime lending market.


Unlock the Power of Speed: Instant Funding Solutions for Modern Lenders & High-Risk Borrowers

How to start a personal loan business

Expanding Access to Small-Dollar Loans: Innovative Funding Methods for Subprime Consumers

In the evolving landscape of online lending, especially for subprime, credit-challenged consumers in the USA, it’s crucial to explore and implement versatile funding methods.

This blog post [signup for our free Newsletter] delves into various strategies to streamline financial transactions for these consumers once they qualify for small-dollar loans.

We’ll expand on some of the most effective techniques, such as debit card processing, PUSH/Instant funding, ACH payment processing, and Real-Time Payments (RTP).

Understanding the Need for Diverse Funding Methods

Before diving into the specifics, it’s essential to recognize why various funding methods are vital. Subprime borrowers often face limitations in traditional banking services, making accessibility and speed critical in improving their financial experiences.

Debit Card Processing for Loan Payments

Debit card processing lets lenders pull payments directly from a consumer’s account.This method is convenient for borrowers, offers enhanced security, and reduces the likelihood of missed payments.

Ease of Access and Security

Integrating with Loan Management Systems

Integrating debit card processing with loan management systems can streamline the repayment process, offering a seamless experience for both lenders and borrowers.

PUSH/Instant Funding on Debit Cards

Immediate Access to Funds

PUSH or instant funding methods allow lenders to deposit loan amounts directly onto a borrower’s debit card. This approach ensures that funds are available almost immediately, which is crucial for consumers needing urgent access to cash.

Enhancing Customer Satisfaction

Lenders can significantly improve the borrowing experience by offering instant funding, increasing customer satisfaction and loyalty.

ACH Payment Processing

Flexibility in Transactions

Automated Clearing House (ACH) payment processing is a versatile method that pushes funds to a borrower’s bank account and pulls repayments from it. This flexibility is particularly beneficial for subprime borrowers with inconsistent cash flows.

Reducing Processing Times and Fees

ACH transactions typically have lower fees compared to traditional banking methods. Additionally, advancements in ACH processing have significantly reduced transaction times.

Real-Time Payments (RTP)

The Future of Financial Transactions

RTP represents the cutting edge in financial transaction technology. It allows for the immediate transfer of funds between banks, revolutionizing how borrowers receive and repay loans.

Building a More Inclusive Financial System

By adopting RTP, lenders can cater to the needs of credit-challenged consumers more efficiently, fostering a more inclusive financial environment.

Expanding the range of funding options for subprime borrowers is crucial in ensuring accessibility and convenience. Here are some additional ideas for funding methods that lenders can consider:

Innovative Funding Solutions for Subprime Borrowers

Prepaid Card Disbursements

Expanding Accessibility

Prepaid cards can be an effective alternative for borrowers who do not have bank accounts or prefer not to use them for loan transactions.

Lenders can load loan amounts onto prepaid cards, which borrowers can use like regular debit cards.

Controlling Funds Usage

This method also gives lenders some control over where the loan funds can be spent, ensuring the money is used for its intended purpose.

Mobile Wallet Transfers

Leveraging Technology

With the increasing use of smartphones, transferring loan funds to a borrower’s mobile wallet can be quick and efficient. Services like Apple Pay, Google Pay, or PayPal can facilitate these transactions.

Enhancing Convenience

This method is particularly convenient for borrowers, allowing them to access and use their funds immediately from their mobile devices.

Peer-to-Peer (P2P) Payments

Streamlining Transactions

P2P payment platforms can be used for both disbursing funds and collecting repayments. This method is fast and often incurs lower transaction fees.

Broadening Reach

P2P platforms can reach a wider audience, including those whom traditional banks do not serve.

Cryptocurrency Loans

Embracing Digital Currencies

Cryptocurrency can be viable for lenders willing to venture into more modern territories. Loans and repayments can be processed in digital currencies like Bitcoin or Ethereum.

Global Accessibility

This method offers global accessibility and can be particularly appealing to tech-savvy borrowers. However, it also involves higher risks and volatility.

Employer-Based Loan Programs

Want to launch a consumer loan business?

Collaborating with Employers

Lenders can partner with employers to offer short-term loans to employees. The repayment can be structured as payroll deductions, reducing the risk of default.

Ensuring Stability

This method ensures a steady repayment source and directly provides financial assistance to needy employees.


Lenders must adopt diverse and efficient funding methods as online lending continues to grow, especially for subprime borrowers in the USA.

Debit card processing, PUSH/Instant funding, ACH payment processing, and RTP are not just tools for financial transactions; they are gateways to financial inclusivity and empowerment.

By leveraging these methods, lenders can provide better services, improve customer satisfaction, and play a pivotal role in improving the financial health of credit-challenged consumers.

This article aims to provide a comprehensive guide for lenders targeting subprime borrowers.

If you have any specific questions or need further clarification on any of the methods discussed, feel free to ask!

Questions? Need help? Introductions to 3rd-party vendors who will enable you to utilize these payment methods? Reach out to Jer at : for 


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Lenders, you want to learn more about collaborating with a Native American Indian tribe?


How to Start a Payday Loan Business in 2024

Start a consumer loan business

The Comprehensive Guide to Starting a Payday Loan and Check Cashing Business

Introduction to the Payday Loan and Check Cashing Industry

The payday loan and check cashing industry presents a unique blend of financial services, offering quick, short-term loans and check cashing services to customers.

With a market size of approximately $11 billion, it’s a sector filled with potential for growth and profitability.

Understanding the Basics

Market Size and Potential

Market Size:

$11B, indicating a robust and active industry.

Starting Costs

– Minimum Starting Costs: $1,754
– Maximum Starting Costs: $37,876
– These costs include equipment, retail space, inventory, marketing, software, and website development.

Key Steps to Launch Your Business

Business Model and Revenue Streams

-Payday Loans: Short-term loans are typically due on the borrower’s next payday.
– Check Cashing: Charging a fee for cashing checks for customers.

 Business Structure and Legal Considerations

– Choose the right business structure (LLC, corporation, etc.).
– Obtain necessary licenses and comply with local regulations.

Marketing and Customer Acquisition

Building an Online Presence

– Develop a user-friendly website showcasing services.
– Implement SEO strategies for online visibility.

 Community Engagement

– Host financial literacy workshops.
– Participate in local events to build brand recognition.

Financial Planning and Management

Revenue and Profit Margins

– Gross Margin: Approximately 43%.
– Manage expenses carefully to maintain profitability.

Risk Management

– Implement robust underwriting criteria to minimize default risks.

Challenges and Solutions

High Competition

– Develop a unique value proposition to differentiate from competitors.
– Focus on customer service excellence.

Employee Management
– Offer competitive pay and benefits to reduce turnover.
– Foster a positive work environment.


Starting a payday loan and check cashing business demands dedication and a strategic approach.

By understanding the market, managing finances wisely, and focusing on customer needs, entrepreneurs can navigate the complexities of this industry and build a successful business.


As a potential entrepreneur entering the payday loan business, it’s crucial to provide expanded insights and strategies beyond the foundational aspects. Here are additional action items and strategies to consider:

Expanded Market Research and Target Audience Analysis

1. Demographic Studies: Conduct detailed research to understand your target demographic, including their financial habits and needs.
2. Competitor Analysis: Deeply analyze local competitors, their services, pricing, and customer feedback.

Advanced Marketing Strategies

1. Digital Marketing: Invest in PPC campaigns and social media marketing targeting local audiences.
2. Community Outreach: Partner with community organizations to build trust and brand recognition.

Technology Integration

1. Software Solutions: Utilize advanced loan management software for efficient processing and risk assessment.
2. Online Platform Development: Develop a robust online platform for remote application and processing of loans.

Compliance and Legal Framework

1. Regulatory Compliance: Stay updated with changing regulations and ensure full compliance.
2. Legal Consultation: Regularly consult with a legal expert specializing in finance to navigate legal complexities.

Financial Management and Funding

1. Investor Relations: If external funding is needed, prepare a compelling pitch for investors.
2. Cash Flow Management: Implement strict cash flow management strategies to maintain liquidity.

Human Resource Management

1. Training Programs: Invest in training programs for employees focusing on customer service and regulatory compliance.
2. Performance Incentives: Implement performance-based incentives to motivate staff.

Risk Mitigation

1. Credit Risk Analysis: Develop a robust system for assessing borrowers’ creditworthiness.
2. Diversification: Consider diversifying services to include other financial products to mitigate risk.

 Customer Service Excellence

1. Feedback Systems: Implement systems to collect and act on customer feedback.
2. Customer Support: Provide top-notch customer support, including financial counseling for borrowers.

 Sustainability and Social Responsibility

1. Ethical Lending Practices: Commit to ethical lending practices and transparency.
2. Community Programs: Initiate programs that contribute positively to the community, enhancing brand reputation.

Expansion and Scaling

1. Franchise Model: Consider a franchise model for rapid expansion.
2. New Markets: Research and enter new markets with potential demand.

Continual Improvement and Innovation

1. Market Trends: Stay abreast of market trends and adapt your business model accordingly.
2. Innovation: Continuously seek ways to innovate in services and customer experience.

By focusing on these expanded strategies and action items, entrepreneurs can not only start but also grow and sustain a successful payday loan business in a competitive market.


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Exposed: The Shocking Truth Banks Don’t Want You to Know About Subprime Lending!

How to start a consumer loan business

I appreciate the acknowledgment that banks are stepping into a space that non-traditional, Alternative Financial Services lenders [AFS] lenders have served for years: short-term, small-dollar loans [$50 to $1500] for individuals needing immediate financial assistance. 

However, while banks may be newcomers to this arena, it’s essential to understand that they have not improved upon what specialized [AFS] subprime lenders have been offering for years.

In fact, subprime lenders play a crucial role in providing financial solutions to a huge demographic underserved by traditional financial institutions.

Facts About Small-Dollar Loans

Facts About Small-Dollar Loans

  • Availability and Regulation
  • Small-dollar loans are available by state-licensed lenders in 30+ states and are highly regulated.
  • Usage Statistics
  • About 16 million households use these types of loans annually.
  • Loan Costs
  • The average fee for a single-payment small-dollar loan is $15 per $100 borrowed. You’re paid 1X per month? Borrow $100 and pay $115 on your next payday. [Fully disclosed on lenders websites and B & M walls.]
  • The monthly payment for an installment loan is dependent on the loan’s term.
  • Consumer Satisfaction 96% of borrowers find small-dollar loans to be useful.
  • Consumer Complaints
  • Small-dollar loans constitute only 1.5% of all consumer complaints submitted to the Consumer Financial Protection Bureau (CFPB).
  • Complaints about small-dollar loans have been on a consistent decline for 22 straight months.
  • Complaint Nature
  • Both CFPB and Better Business Bureau (BBB) data suggest that most complaints about small-dollar loans are related to scams rather than regulated lenders.
  • Financial Resilience
  • Approximately 65% of USA households struggle with an unanticipated expense of $400.
  • Approximately 160,000,000 USA residents live paycheck to paycheck!
  • Approximately 40% of USA households earning > $100,000 annually live paycheck to paycheck.
How many people need a payday loan

Pros & Cons of Small-Dollar Loans by AFS Lenders


  • Banking Requirements
  • An active checking account is necessary.
  • Income Verification
  • Proof of income is required.
  • Identification
  • Valid identification must be provided.
  • Age Limit
  • Applicants must be at least 18 years old.
  • Accessibility
  • Subprime lenders offer services to people who may not even qualify for a bank’s small-dollar loans. A significant number of these individuals may not have a long-standing relationship with a bank or fail to meet other criteria.
  • Access: From the comfort of their home, office, school, bicycle… borrowers can apply for a small-dollar loan and access their funds within minutes.
  • Immediacy
  • Speed! Subprime lenders specialize in fast approvals and disbursements, often providing lifelines for people in emergencies the SAME DAY!
  • Cash: 
  • Many subprime lenders dispense cash into their clients’ hands within minutes
  • Debit Cards: 
  • Subprime lenders can deposit loan proceeds onto a client’s debit card in seconds.
  • Simplicity:
  • Less red tape and bureaucracy are involved when borrowing from specialized subprime lenders, making it more straightforward for borrowers.
  • Credit History Flexibility:
  • While most banks will check your credit, many subprime lenders offer loans without a credit check or with lenient credit requirements.
  • Financial Inclusion:
  • Subprime lenders serve a demographic ignored by traditional banking institutions, thus promoting financial inclusion.
  • Quick Turnaround
  • Time-sensitive financial needs are met more readily.
  • Niche Expertise
  • Specialized subprime lenders have more experience in assessing risk in their clientele and can often offer more customized solutions.
  • Disclosure: Legitimate lenders 100% disclose all fees, the APR…
  • Regulatory Scrutiny
  • Subprime lenders are subject to intense scrutiny and regulation, making it expensive for them to operate.
  • Competition: Online and storefront competition for customers is intense. Great for borrowers!


  • Higher Interest Rates
  • The interest rates are higher than bank loans due to the level of risk involved.
  • Repayment Terms
  • Some loan products require quick repayment, which can be challenging for some borrowers.
  • Credit Building: AFS lenders rarely contribute to improving their customers’ credit scores. [This is evolving.]



  • An active checking account is necessary.
  • Typically, this checking account must be seasoned for a minimum of 6 months!
  • Income Verification
  • Proof of income is required. [Gig workers need not apply!]
  • Identification
  • Valid identification must be provided.
  • Age Limit
  • Applicants must be at least 18 years old.
  • B of A Example: You must have a Bank of America checking account that has been open for at least 1 year or 2.5 years if you don’t have a credit score. [B of A is a typical example!]
  •  Account History: You must have a positive balance in your Bank of America checking account and make regular monthly deposits.
  • Direct Deposit: Direct deposit of your income into your B of A  account is mandatory. Thus, banks have virtually zero risk of default! Hence their low fees unless the borrower experiences a $35 NSF fee.
  • You cannot have an open Balance Assist loan and must not have opened 6 Balance Assist loans in the last 12 months.
  • Credit-based factors are also considered in your eligibility. [Subprime consumers have credit issues! Always!!]

Readers Pay Attention: For U.S. Bank’s Simple Loan, you must have a personal checking account open for at least six months, with three months of recurring direct deposits. In both cases, the bank will check your credit. The application is on the bank’s website and mobile banking app. 

[You can’t even walk into their Branch for this loan IF you could qualify!]

“We know when consumers are in financial distress, they focus on speed to get the money. Is it a sure thing, and how long will it take to get approved?” says Alex Horowitz, principal officer focusing on consumer finance for the Pew Charitable Trusts. “These loans are available 24/7. You can get it from your phone or laptop, and the money is in your account within minutes.”

Friends, IS THIS A HORRIFIC JOKE on folks who need help TODAY?

Readers, is this a joke?

  • A Typical Bank Disclosure: To be eligible to apply for a small-dollar loan, applicants must have an open U.S. Bank personal checking account with recurring direct deposits.
  • Positive Balance: Must maintain a positive balance and make regular deposits. Each checking account in which you are an owner or co-owner must have a positive balance as of the end of the previous business day.
  • NSF Fees: If you don’t have enough money in your account or your linked Balance Connect® for overdraft protection account at the time of a transaction, we’ll decline or return it. Even in Decline All, your account may still become overdrawn. This can happen if your debit card is authorized for one amount, but the final amount is higher (for example, adding a tip at a restaurant).
  • Loan History: Cannot have multiple Balance Assist loans within a year. There is a $5 fee for opening a Balance Assist loan, and there are no other interest or finance charges. To help you compare this to other products in the market, the $5 fee would translate into an effective Annual Percentage Rate (APR) of 5.99% to 29.76%, depending on the amount borrowed. Repayment is made monthly over a period of three months. Example: If you took a $100 Balance Assist loan, your total to repay would be $105 with an equivalent Annual Percentage Rate (APR) of 29.76%, and a payment of $35 due in 30 days, $35 due in 60 days and $35 in 90 days.
  • For every $100 borrowed: you pay a $6 fee. If you borrow $400, your fee will be $24. You’ll pay back a total of $424 in three monthly payments of approximately $141.33 each. Your total cost to borrow (annual percentage rate) will be 35.65%.
  • Credit Factors: Credit history and other credit-related factors are considered.
APR Rates


While it’s promising to see traditional banks offer more solutions to consumers who need small-dollar loans, it’s imperative to remember that they are not the first to do so.

Subprime lenders have been filling this gap for years and continue to offer critical services to those who need them most.

These lenders bring unique advantages such as greater accessibility, quicker turnaround, and a higher level of specialization in serving credit-constrained consumers.

Banks entering this space doesn’t necessarily make them a better or more ethical choice; it merely broadens the options available.

The critical factor is that consumers have choices that suit their financial situations and immediate needs.

In that light, subprime lenders remain vital to the economic ecosystem, providing services many traditional banks are still learning to offer effectively.

What We do:

My Team and I are subprime lending pros and masters of small-dollar loans for the masses.

We know how to launch/improve a consumer loan business and get licensed in any state.

Are you interested in learning more about the Tribal-Sovereign Nation Model? Reach out! We formed Leaning Rock Finance Consulting Group in 2011. We introduce Tribal Economic Boards to lenders.

We can create a business plan to make even the most conservative investor say, “I’ll lend you the money!”

We are website-building wizards, and we’ll set you up with an online loan application process in no time.

We are wizards at selecting loan management software, acquiring customers, processing loan applications, underwriting subprime loans, and funding the loans.

And when it comes to collecting on nonperforming loans, we are like a bloodhound on the scent of a bacon cheeseburger.

So, if you have a voracious desire to enter the “business of lending money to the masses,” come to us, and we’ll make it happen with a touch of humor, fun, and SERIOUS profits!

Let's Brainstorm!


Will a $3.99 Monthly Initiative Revolutionize Accessible Cash Advances for the Average Joe?

How to start a consumer loan business

The Disruptor

Joe Consumer was more than a simple guy living in a modest apartment in Queens. He was a dreamer, an idealist who wanted to bring financial empowerment to millions of Americans. At 32, he’d done his time working for large tech companies, where he learned a lot about what not to do. Joe had a vision, and he called it “The Average Joe Consumer.”

He assembled a small team of like-minded developers, designers, and finance experts. Despite the challenges, they had managed to launch a Cash Advance Program as their primary feature. With only a $3.99/month subscription fee, users could access up to $100 in cash advance with 0% APR and no credit check. The program was designed to help real people with real problems.

What’s New?

“We just reached 1,200 premium customers in three days, guys!” Joe announced during a virtual team meeting. “And our first batch had a payback rate of 72%.”

“That’s fantastic, but we should aim for a 95% payback rate,” Jane, the financial analyst on the team, suggested.

“Agreed. We’ll optimize our underwriting process,” Joe said.

Why Just 1,200 Customers?

They had their reasons. First, they were methodically analyzing payback rates, customer satisfaction, and user experience. Joe believed in slow, organic growth rather than flashy marketing campaigns that could drive subscriptions but wouldn’t necessarily sustain them. And the numbers were encouraging. Of their first 1,200 premium subscribers, 250 had already paid for their second month.

Adjusting To Customer Feedback

Early feedback revealed customers were unhappy with the 2-3 standard business days to transfer funds.

“Okay, team, we’ve got to shorten that. Can we manage same-day ACH transfers?” Joe asked.

“We can, and it won’t cost extra,” Sam, the lead developer, confirmed.

They made the change, and reviews started to improve.

New Features

Joe wasn’t just satisfied with providing cash advances. He wanted to give his customers a comprehensive financial tool. The app’s interface had been redesigned to allow users to easily find offers for personal loans, auto insurance, and credit cards designed to help them build or rebuild their credit.

“Let’s ensure these partnerships actually help people make money,” Joe insisted. “I don’t want useless gimmicks. Each offer must be tested.”

After rigorous testing, they added a segment in their app where people could earn money right from their phones, using services like KashKick.

The Road Ahead

In a market where startups took nearly three years to hit $1M ARR (Annual Recurring Revenue), Joe was ambitious. He wanted to get there in just 18 months.

“Investors are going to love us, trust me,” he said in a group chat with his team. “We have the lowest Customer Acquisition Cost in the industry. Plus, we’re already planning Premium+ features for just $6.99/month. We’ve got this, team!”

They all felt the excitement. It was palpable even through the screens of their devices.

One Year Later

Joe’s optimism proved well-founded. The Average Joe Consumer app reached the $1M ARR mark in just over a year, a significant achievement in an industry fraught with high burn rates and even higher customer expectations. But Joe wasn’t planning on stopping there.

“Team, we’re just getting started. We’ve got millions of people to help. Let’s do this!”

And so they did, each day pushing a little harder to achieve a collective dream, making financial freedom accessible for the average Joe, just like them.

Thus, in a world filled with million-dollar startups and billionaires, Joe Consumer and his dedicated team carved out a place for empathy, responsibility, and real-world impact.

The Average Joe Consumer app isn’t just an app; it is a movement, a beacon of hope for those marginalized by the complexities of the financial world.

And for Joe, it’s was only the beginning.

Inspired by True Finance

Here’s the link: True Finance


🎯 “Maximizing ROI: The Pros and Cons of Pausing Lead Purchases on Mondays and Fridays”

The pros and cons of changing your lead purchasing and staffing strategy.

Resource allocation and strategy optimization are crucial for long-term success in the competitive landscape of consumer lending. 

One proposed strategy is to pause the purchase of leads on Mondays and Fridays, which historically show lower conversion rates and reallocate staff efforts towards converting leads from Tuesday, Wednesday, and Thursday while also focusing on collections.

While this approach seems promising at first glance, weighing the pros and cons is essential to make an informed decision.

What do you think?

Money lender purchasing consumer loan leads


1. Resource Allocation: Focusing on converting leads on high-performing days may maximize the productivity of your staff and, thus, increase the overall effectiveness of your lead conversion rate.

2. Improved Collections: The team will have dedicated time to focus on collections, improving the odds of recovering funds that might otherwise be lost.

3. Quality Over Quantity: By not buying low-converting leads, you can focus on higher-quality leads more likely to convert, increasing your ROI.

4. Cost Savings: You could reduce costs by not purchasing leads on low-performing days (Mondays and Fridays).

5. Data-Driven Decision Making: This approach allows your business to be more agile, making operational decisions based on performance metrics.

6. Staff Morale: Your team might feel more productive and more manageable as they will focus on fewer but higher-quality leads. This could also reduce burnout.

7. Better Customer Service: More time can be allocated to each potential customer on high-performing days, potentially improving service and satisfaction.

8. Analytical Insights: Pausing lead acquisition on specific days could serve as a test phase for analyzing whether this move actually improves conversions, providing valuable data for future decisions.

9. Work-Life Balance: If staff members are not pressured to convert leads on lower-performing days, they may experience a more balanced work schedule.


1. Missed Opportunities: By not buying leads on Mondays and Fridays, you may miss out on potential customers who are only available to interact on these days.

2. Dependency on Fewer Days: By focusing on Tuesday, Wednesday, and Thursday leads, your success becomes overly reliant on the performance of these specific days.

3. Cost of Adjustment: Training staff and adjusting to a new schedule may incur short-term costs, both monetary and in terms of productivity.

4. Limited Data: If the decision to pause on Mondays and Fridays is based on limited data, it might not be a sound long-term strategy.

5. Consumer Behavior: If competitors notice your absence on Mondays and Fridays, they might capitalize on it, potentially offering better deals to attract those leads.

6. Operational Complexity: Juggling different tasks like lead conversion and collections could complicate operations, making it harder to focus and excel on either.

7. Market Fluctuations: Consumer behavior isn’t static. By the time you implement this change, the trends that led you to make this decision might have shifted.

8. Cannibalizing Resources: The focus on collections might use resources that would otherwise be used for acquiring new customers, leading to stagnant or declining growth.

9. Legal Implications: Increased focus on collections could bring additional scrutiny, especially if aggressive tactics are used, which can be a legal liability.

10. Reputation Risk: An aggressive focus on collections could harm your reputation among consumers.

11. Employee Turnover: The change might not be well-received by all staff, especially those who have specialized in lead conversion and may not be as adept or willing to focus on collections.


Making changes to your lead purchasing and staff allocation strategy is a significant decision that impacts multiple aspects of your business—from financials to operations and employee morale. 

While considerable advantages exist, such as improved resource allocation, cost savings, and a focus on higher-converting leads, the downsides must be addressed. 

These include missed opportunities, dependency on a limited number of days for leads, and potential reputational risks. A thorough, data-driven analysis should be the first step before implementing such a change. 

Additionally, considering a trial period and closely monitoring metrics could offer further insights into whether this strategy will achieve the desired optimization. 


Subprime Lender Loan Charge-Off Rate (LCR) – Definition and What It Measures

Loan Charge-Off Rate (LCR) – Definition and What It Measures

The Loan Charge-Off Rate (LCR) is a Key Performance Indicator (KPI) that quantifies the rate at which a lender’s loans are deemed unlikely to be recovered and written off as a loss. It measures the risk and effectiveness of a lender’s credit decisions and recovery efforts. It is calculated by dividing the total value of loans charged off during a specific period by the total value of the loan portfolio at the beginning of that period.

LCR = (Total value of charged-off loans during the period) / (Total value of loan portfolio at the beginning of the period)

For example, if a lender has a loan portfolio worth $1,000,000 at the beginning of the quarter, and during that quarter, it charges off loans worth $25,000, the LCR for that quarter would be 2.5% ($25,000 / $1,000,000 * 100%).

Importance and Use of LCR for Subprime Lenders

For subprime lenders, the LCR is a critical KPI. Since subprime borrowers are generally considered riskier due to their credit history, the likelihood of loans being charged off is typically higher than with prime borrowers. As such, a subprime lender’s ability to manage and limit its LCR significantly indicates its operational effectiveness and risk management capabilities.

Managing and improving the LCR involves multiple facets, including but not limited to improving underwriting standards, enhancing collections efforts, and possibly restructuring loans. It’s important to note that while lenders want to keep the LCR as low as possible, a too-low rate might suggest overly strict lending standards, which could limit loan volume and overall profitability.

Challenges in Improving LCR

Subprime lenders face several challenges in improving their LCR. Regulatory hurdles, such as limitations on collection practices, can make it more difficult to recover funds from delinquent borrowers. Technological issues may also be a factor, notably if the lender lacks advanced analytics capabilities to predict which borrowers are most likely to default. Additionally, staffing can be a limitation if there are not enough trained personnel to manage collections effectively.

Investor Expectations

Investors in subprime lenders generally understand the higher risk associated with this market segment. However, they still expect lenders to manage their LCR effectively. A high LCR can indicate poor underwriting standards or ineffective collection practices, impacting profitability. Therefore, investors typically prefer lenders with lower LCRs, all other things being equal.

Unique Considerations for Subprime Lending

Given the nature of subprime lending, lenders should be aware of the additional risks this market presents. They should also be prepared to comply with additional regulatory requirements, such as stricter reporting requirements or limitations on collection practices. Borrower expectations may also differ, with subprime borrowers potentially requiring more flexibility in terms of payment schedules.

Signup for more in our Series, “Subprime Lender KPIs.”

I hope this explanation provides a comprehensive overview of the LCR and its implications for subprime lenders. Do you have any other questions, or is there anything else you would like me to expand on? Reach out:

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